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Threadneedle (Lux) Global Investment Grade Credit Opportunities Fund

Consistently seeking the best opportunities in investment grade credit

Threadneedle (Lux) Global Investment Grade Credit Opportunities Fund is an active credit fund designed to target cash-plus returns over the medium term by investing in Columbia Threadneedle’s best ideas in global investment grade credit. With the flexibility to invest in both long and short strategies, our new fund aims to exploit our highest conviction ideas and generate positive returns regardless of market conditions.

Overview

  • An active, absolute return credit fund that aims to deliver positive cash-plus returns by investing in the best opportunities in global investment grade credit.
  • With the ability to generate returns from both rising and falling markets by going short (as well as long) credit market risk and individual issuer exposure, this fund has the potential to generate positive returns regardless of market conditions.
  • Focussing primarily on developed markets, the fund also has the flexibility to invest in developed market asset-backed and emerging market corporate credit, as well as developed market high yield up to a maximum of 10%. These investments will typically be the subordinated debt of investment grade issuers.
  • Utilises the established and successful investment approach from an experienced team with a long track record in managing both traditional long-only and absolute return investment grade credit strategies. The team have successfully run the investment grade portion of the Threadneedle Credit Opportunities Fund1 for the past eight years, through a number of economic and credit cycles.
  • The fund follows our well-established approach to managing credit portfolios that is founded on intensive fundamental research to uncover the best global credit ideas.
  • With developed market interest rates and bond yields close to historical lows, an absolute return approach would be well placed should interest rates or bond yields begin to normalise.

Launch date
27 March 2018

 

Fund Managers
Alasdair Ross
Ryan Staszewski

 

Performance Target
Citigroup EUR 1 Month Eurodeposit plus 250bps (gross of charges and tax) over the medium term*

* Please note that the performance target may not be attained.

¹The reference to the Threadneedle Credit Opportunities Fund is for illustrative purposes only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services.

Philosophy and process

We believe that given solid fundamental credit insights, a reasonable time horizon, and the ability to withstand short-term volatility, credit opportunities in the investment grade corporate bond market can be exploited to achieve attractive risk-adjusted returns. Our investment approach is built around robust credit research, portfolio construction and risk management.

Our highly experienced and well-resourced team of credit research professionals work closely together in a collaborative and interactive environment, and consistently apply a proprietary process which results in a deep understanding of issuer and industry dynamics and allows the team’s best investment ideas to emerge.

The credit analysts deliver formal investment recommendations, risk ratings and internal credit ratings for the issuers they follow. Each investment recommendation is accompanied with a thesis statement, which includes an issuer risk score. This statement includes the analyst’s expectations (and risks around) the evolution of financial metrics, operating results and management behaviour.

In addition, analysts set out which parts of the thesis are critical to the recommendation and list the events that might trigger a change in view. These recommendations and ratings, in combination with a relative value assessment of each issuer, form the basis of security selection, position sizing and risk monitoring.

The fund is constructed with a portfolio of short maturity investments with additional overlay strategies aiming to provide additional returns. These include Event, Directional long/short, Relative Value, Basis and finally Capital structure arbitrage strategies. The portfolio managers will actively allocate risk to whichever mix of instruments is expected to provide strong risk-adjusted returns.

Insights

23 September 2021

Credit Threads #2: Consumer balance sheets

In this episode of Credit Threads, we discuss the outlook for consumers and the ways bond investors can find opportunities in consumer debt.
Listen time - 24 min
20 September 2021

Mine Tzegul

Portfolio Manager

Process is everything for Pan European Smaller Companies

The onset of Covid-19 in Europe initially saw value and cyclical stocks perform poorly. But as the continent emerged out of the first wave towards the end of summer 2020, this began to reverse.
Read time - 5 min
20 September 2021

Rosalie Pinkney

Senior Credit Analyst

Natalia Luna

Senior Thematic Investment Analyst, Responsible Investment

Climate change to bear upon banks’ financial performance

For investors evaluating financial institutions, the climate crisis will soon become a key consideration. Our research shows there is already a wide dispersion between the sector leaders and laggards.
Read time - 5 min

Literature

PDF

Fund Profile

Fund Manager

Alasdair Ross
Head of Investment Grade Credit, EMEA
Ryan Staszewski
Portfolio Manager, Investment Grade Credit
Important Information​

For internal use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). Threadneedle (Lux) is an investment company with variable capital (Société d’investissement à capital variable, or “SICAV”) formed under the laws of the Grand Duchy of Luxembourg. The SICAV issues, redeems and exchanges shares of different classes. The management company of the SICAV is Threadneedle Management Luxembourg S.A, who is advised by Threadneedle Asset Management Ltd. and/or selected sub-advisors. The SICAV is registered in Austria, Belgium, France, Finland, Germany, Hong Kong, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden, Switzerland, Taiwan and the UK; however, this is subject to applicable jurisdictions and some sub-funds and/or share classes may not be available in all jurisdictions. Shares in the Funds may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an offer to the public and are in accordance with applicable local legislation. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. The above documents are available free of charge on this website. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Sociétés (Luxembourg), Registered No. B 110242, 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. columbiathreadneedle.com